You may be able to take a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan. And, beginning in 2018, if you’re the designated beneficiary you may be eligible for a credit for contributions to your Achieving a Better Life Experience (ABLE) account.

Amount of the credit

The amount of the credit is 50%, 20% or 10% of your retirement plan or IRA or ABLE account contributions depending on your adjusted gross income (reported on your Form 1040 series return). The maximum contribution amount that may qualify for the credit is $2,000 ($4,000 if married filing jointly), making the maximum credit $1,000 ($2,000 if married filing jointly). Use the chart below to calculate your credit.

ABLE contributions eligible for the credit

Beginning in 2018, the Saver’s Credit can be taken for your contributions to an ABLE account if you’re the designated beneficiary.

Rollover contributions (money that you moved from another ABLE account or from a Qualified Tuition Plan (QTP) account do not qualify for the credit. Also, your eligible contributions may be reduced by any recent distributions you received from your ABLE account.

*Single, married filing separately, or qualifying widow(er)

2019 Saver's Credit

Credit Rate

Married Filing Jointly

Head of Household

All Other Filers*

50% of your contribution

AGI not more than $38,500

AGI not more than $28,875

AGI not more than $19,250

20% of your contribution

$38,501 - $41,500

$28,876 - $31,125

$19,251 - $20,750

10% of your contribution

$41,501 - $64,000

$31,126 - $48,000

$20,751 - $32,000

0% of your contribution

more than $64,000

more than $48,000

more than $32,000

2018 Saver's Credit

Credit Rate

Married Filing Jointly

Head of Household

All Other Filers*

50% of your contribution

AGI not more than $38,000

AGI not more than $28,500

AGI not more than $19,000

20% of your contribution

$38,001 - $41,000

$28,501 - $30,750

$19,001 - $20,500

10% of your contribution

$41,001 - $63,000

$30,751 - $47,250

$20,501 - $31,500

0% of your contribution

more than $63,000

more than $47,250

more than $31,500

2017 Saver's Credit

Credit Rate

Married Filing Jointly

Head of Household

All Other Filers*

50% of your contribution

AGI not more than $37,000

AGI not more than $27,750

AGI not more than $18,500

20% of your contribution

$37,001 - $40,000

$27,751 - $30,000

$18,501 - $20,000

10% of your contribution

$40,001 - $62,000

$30,001 - $46,500

$20,001 - $31,000

0% of your contribution

more than $62,000

more than $46,500

more than $31,000

2016 Saver's Credit

Credit Rate

Married Filing Jointly

Head of Household

All Other Filers*

50% of your contribution

AGI not more than $37,000

AGI not more than $27,750

AGI not more than $18,500

20% of your contribution

$37,001 - $40,000

$27,751 - $30,000

$18,501 - $20,000

10% of your contribution

$40,001 - $61,500

$30,001 - $46,125

$20,001 - $30,750

0% of your contribution

more than $61,500

more than $46,125

more than $30,750

2015 Saver's Credit

Credit Rate

Married Filing Jointly

Head of Household

All Other Filers*

50% of your contribution

AGI not more than $36,500

AGI not more than $27,375

AGI not more than $18,250

20% of your contribution

$36,501 - $39,500

$27,376 - $29,625

$18,251 - $19,750

10% of your contribution

$39,501 - $61,000

$29,626 - $45,750

$19,751 - $30,500

0% of your contribution

more than $61,000

more than $45,750

more than $30,500

Retirement savings eligible for the credit

The Saver’s Credit can be taken for your contributions to a traditional or Roth IRA; your 401(k), SIMPLE IRA, SARSEP, 403(b), 501(c)(18) or governmental 457(b) plan; and your voluntary after-tax employee contributions to your qualified retirement and 403(b) plans.

Rollover contributions (money that you moved from another retirement plan or IRA) aren’t eligible for the Saver’s Credit. Also, your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA.

Example: Jill, who works at a retail store, is married and earned $38,000 in 2018. Jill’s husband was unemployed in 2018 and didn’t have any earnings. Jill contributed $1,000 to her IRA in 2018. After deducting her IRA contribution, the adjusted gross income shown on her joint return is $36,000. Jill may claim a 50% credit, $500, for her $1,000 IRA contribution.